Jammu & Kashmir Bank Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Jammu & Kashmir Bank Ltd filed with BSE on 08 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Jammu & Kashmir Bank reported a record annual net profit of Rs 2,363 crores for FY26 and a record quarterly profit of almost Rs 800 crores in Q4, up 36% quarter-on-quarter. Management said business grew 13.6% for the year with deposits up 11.3% and advances up 16.8%, while NIM moderated to 3.60% due to RBI rate cuts, and asset quality improved with GNPA at 2.50% and NNPA at 0.64%. For FY27, management gave conservative guidance of 12% credit growth, 10% deposit growth, CASA at 45%, NIM around 3.5%, ROA maintained at current levels, ROE around 16%, and Gross NPA below 2.25%.
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Numbers mentioned
Net profit: INR2,363 crores (FY26)
p. 3
“posting a net profit of INR2,363 crores for the financial year”
Amitava Chatterjee, page 3 of the filed PDF · View the filing
Net profit: almost INR800 crores (Q4 FY26)
p. 3
“posting a net profit of almost INR800 crores, recording a 36% Q-on-Q growth”
Amitava Chatterjee, page 3 of the filed PDF · View the filing
Business growth: 13.6% (FY26)
p. 4
“The bank has registered a business growth of 13.6% during FY 25-'26, with deposits and gross advances growing at 11.3% and 16.8% respectively”
Amitava Chatterjee, page 4 of the filed PDF · View the filing
Loan growth in Rest of India vs J&K/Ladakh: 28.8% vs 9.5% (FY26)
p. 4
“the loan growth in ROI was much higher at 28.8% vis-à-vis 9.5% for Jammu & Kashmir and Ladakh”
Amitava Chatterjee, page 4 of the filed PDF · View the filing
CASA ratio: 45.65% (as on 31st March 2026)
p. 4
“the Bank being able to improve its CASA ratio from 44.10% as on 31st December 2025 to 45.65% as on 31st March 2026, and thereby surpassing our guidance of 45%”
Amitava Chatterjee, page 4 of the filed PDF · View the filing
Net Interest Margin: 3.60% (FY26)
p. 4
“with NIM for FY25-'26 being recorded at 3.60%”
Amitava Chatterjee, page 4 of the filed PDF · View the filing
Impairment provision for Gramin Bank: INR180 crores (FY26)
p. 4
“a hit on our Other Income on account of impairment provision of INR180 crores along with a sequential moderation in our trading income”
Amitava Chatterjee, page 4 of the filed PDF · View the filing
Operating expenditure reduction: around 4% (FY26)
p. 4
“A key driver of this improved profitability has been operating leverage, with operating expenditure reducing by around 4%”
Amitava Chatterjee, page 4 of the filed PDF · View the filing
Business per Employee: INR 23.64 crores (as on 31st March 2026)
p. 5
“Business per Employee improving from INR 20.18 crores as on 31st March 2025 to INR 23.64 crores as on 31st March 2026”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
Net Profit per Employee: INR 19.47 lakhs (FY26)
p. 5
“Net Profit per Employee improving from INR 16.65 lakhs to INR 19.47 lakhs during the same period”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
Cost-to-Income Ratio: 56.18% (FY26)
p. 5
“Cost-to-Income Ratio also continues to moderate for the fourth year running, being recorded at 56.18% for the financial year”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
RoA: 1.37% (FY26)
p. 5
“we have also surpassed our guided RoA and RoE levels, with RoA and RoE of 1.37% and 16.85% respectively for the financial year”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
RoE: 16.85% (FY26)
p. 5
“we have also surpassed our guided RoA and RoE levels, with RoA and RoE of 1.37% and 16.85% respectively for the financial year”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
GNPA: 2.50% (as on 31st March 2026)
p. 5
“GNPA and NNPA as on 31st March 2026 stand at 2.50% and 0.64% respectively”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
NNPA: 0.64% (as on 31st March 2026)
p. 5
“GNPA and NNPA as on 31st March 2026 stand at 2.50% and 0.64% respectively”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
Gross Slippage Ratio: 0.82% (FY26)
p. 5
“reflects our commitment to responsible growth. GNPA and NNPA as on 31st March 2026 stand at 2.50% and 0.64% respectively. This demonstrates a structural strengthening of our underwriting discipline alongside a tight control over slippages with Gross Slippage Ratio of just 0.82% for the year”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
Capital Adequacy Ratio: 16.55% (as on 31st March 2026)
p. 5
“we have achieved highest-ever Capital Adequacy of 16.55% with CET1 at 13.54%”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
CET1: 13.54% (as on 31st March 2026)
p. 5
“we have achieved highest-ever Capital Adequacy of 16.55% with CET1 at 13.54%”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
FII shareholding: 8.34% (as on 31st March 2026)
p. 5
“our bank has witnessed an increase in FII shareholding to 8.34% as on 31st March 2026 from 7.64% a year ago”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
SMA total: INR14,724 crores, 12.07% of advances (March 2026)
p. 13
“Total SMA if you look at March to March, March ‘25 we had INR23,087 crores, that is 22.33% of advances as SMA, which has come down to INR14,724 crores, that is 12.07% of the advances, that is almost 10 percentage points reduction in SMA”
Amitava Chatterjee, page 13 of the filed PDF · View the filing
SMA-1: 4.44% (March 2026)
p. 13
“Now SMA-1 has come down from 5.54% to 4.44% March Y-on-Y”
Amitava Chatterjee, page 13 of the filed PDF · View the filing
SMA-2: 0.71% (March 2026)
p. 13
“SMA-2 is slightly higher at 0.71% which was 0.35% last year”
Amitava Chatterjee, page 13 of the filed PDF · View the filing
Market share in J&K: 60% (current)
p. 14
“While we still maintain a market share of 60%, the branch share is only 37%”
Amitava Chatterjee, page 14 of the filed PDF · View the filing
Total business: INR2.9 lakh crores (current)
p. 16
“Currently, if you look at our business levels is at around INR2.9 lakh crores at the moment”
Amitava Chatterjee, page 16 of the filed PDF · View the filing
NPA in trade category: INR597 crores (Q4 FY26)
p. 15
“Last quarter the gross NPA was INR765 crores and this quarter the number is INR597 crores”
Sonal Minhas, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Credit growth — 12% · FY27
stated firmly by Amitava Chatterjee
p. 5
“we have taken a conservative stance in our market guidance for '26-'27, which is a credit growth of 12%, deposit growth of 10%, CASA at 45%, NIM around 3.5%, RoA - maintain around the current levels, RoE around 16%, and Gross NPA below 2.25%”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
Deposit growth — 10% · FY27
stated firmly by Amitava Chatterjee
p. 5
“we have taken a conservative stance in our market guidance for '26-'27, which is a credit growth of 12%, deposit growth of 10%, CASA at 45%, NIM around 3.5%, RoA - maintain around the current levels, RoE around 16%, and Gross NPA below 2.25%”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
CASA ratio — 45% · FY27
stated firmly by Amitava Chatterjee
p. 5
“we have taken a conservative stance in our market guidance for '26-'27, which is a credit growth of 12%, deposit growth of 10%, CASA at 45%, NIM around 3.5%, RoA - maintain around the current levels, RoE around 16%, and Gross NPA below 2.25%”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
NIM — around 3.5% · FY27
stated firmly by Amitava Chatterjee
p. 5
“we have taken a conservative stance in our market guidance for '26-'27, which is a credit growth of 12%, deposit growth of 10%, CASA at 45%, NIM around 3.5%, RoA - maintain around the current levels, RoE around 16%, and Gross NPA below 2.25%”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
RoA — around current levels · FY27
stated firmly by Amitava Chatterjee
p. 5
“we have taken a conservative stance in our market guidance for '26-'27, which is a credit growth of 12%, deposit growth of 10%, CASA at 45%, NIM around 3.5%, RoA - maintain around the current levels, RoE around 16%, and Gross NPA below 2.25%”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
RoE — around 16% · FY27
stated firmly by Amitava Chatterjee
p. 5
“we have taken a conservative stance in our market guidance for '26-'27, which is a credit growth of 12%, deposit growth of 10%, CASA at 45%, NIM around 3.5%, RoA - maintain around the current levels, RoE around 16%, and Gross NPA below 2.25%”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
Gross NPA — below 2.25% · FY27
stated firmly by Amitava Chatterjee
p. 5
“we have taken a conservative stance in our market guidance for '26-'27, which is a credit growth of 12%, deposit growth of 10%, CASA at 45%, NIM around 3.5%, RoA - maintain around the current levels, RoE around 16%, and Gross NPA below 2.25%”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
Employee cost quarterly run rate — around INR500 crores or lower · first two quarters FY27
stated firmly by Amitava Chatterjee
p. 6
“Thank you, Gaurav ji, and it's a very fair estimate that you made. At least for the next two quarters, I am certain that it will be around that.”
Amitava Chatterjee, page 6 of the filed PDF · View the filing
Employee cost full year — below INR2,500 crores · FY27
stated firmly by Amitava Chatterjee
p. 7
“So, but then that will not add to the cost because the lowering of the cost in the last say six to seven quarters has been substantial and that will continue. So, it will not add to the cost, but yes, INR2,500 crores if you are considering, it is a fair estimate.”
Amitava Chatterjee, page 7 of the filed PDF · View the filing
Capital raise — INR 1,250 crores · current year
stated conditionally by Amitava Chatterjee
p. 5
“the Bank will consider raising of capital to the tune of INR 1,250 crores in the current year, at an opportune time, for which the Bank has already obtained both Board as well as Shareholders' approval”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
Business size — INR5 lakh crores · three years
stated as an aspiration by Amitava Chatterjee
p. 16
“if you ask me three years' time, it's not aspiration, our aim and what we have with us in the bank, we aim to cross INR5 lakh crores by then”
Amitava Chatterjee, page 16 of the filed PDF · View the filing
Credit cost — around 0.1% or 0.2% maximum · next year
stated as an aspiration by Amitava Chatterjee
p. 17
“I guess the credit cost will be somewhere around say 0.1% or 0.2% maximum, not more than that.”
Amitava Chatterjee, page 17 of the filed PDF · View the filing
Credit cost — not more than 1% · next three to four years
stated as an aspiration by Amitava Chatterjee
p. 18
“if I look at my historical data, I am unable to assess a credit cost which is more than 1% in the next three to four years”
Amitava Chatterjee, page 18 of the filed PDF · View the filing
ECL provisioning — around INR1,600 to INR1,700 crores · period of five years
stated conditionally by Amitava Chatterjee
p. 11
“I can say that if I take the base requirements of the circular given by RBI, for a period of five years, I think our bank will need to provide for around INR1,600 to INR1,700 crores”
Amitava Chatterjee, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said staff costs will further come down, driven by pension shift to NPS and lower headcount from retirements.
Answered by Amitava Chatterjee
Asked by Yogesh Bathia: What trend is expected in employee cost for next year given the decline this year?
p. 6
“I believe that staff costs will further come down, even in the next quarter and the quarters after that.”
Amitava Chatterjee, page 6 of the filed PDF · View the filing
Management confirmed INR2,500 crores is a fair estimate even with planned specialist hiring.
Answered by Amitava Chatterjee
Asked by Gaurav Agarwal: Can full year employee cost be contained below INR2,500 crores?
p. 7
“but yes, INR2,500 crores if you are considering, it is a fair estimate”
Amitava Chatterjee, page 7 of the filed PDF · View the filing
Management attributed the fall to a one-time INR180 crore impairment provision related to Gramin Bank amalgamation.
Answered by Amitava Chatterjee
Asked by Sonal: Why did other income fall year-on-year?
p. 8
“Other income -- other income has fallen because of the one-time provision of INR180 crores for Gramin Bank, that EDB amalgamation with our Gramin Bank, that was taken in the other income head.”
Amitava Chatterjee, page 8 of the filed PDF · View the filing
Management confirmed a one-off reversal of INR153 crores due to a discount rate change in retirement benefits.
Answered by Amitava Chatterjee
Asked by Sonal: Was there a one-off in the Q4 employee cost figure of INR509 crores?
p. 9
“there was a reversal of INR153 crores in Q4. That was on account of discount rate change in retirement benefits.”
Amitava Chatterjee, page 9 of the filed PDF · View the filing
Management said growth is driven by lending to highly-rated NBFCs, with co-lending still immaterial as it started late in Q4.
Answered by Amitava Chatterjee
Asked by Mona Khetan: What is driving growth in the financial markets book, and does it include co-lending?
p. 11
“So this year we have had some very good NBFCs, all highly rated NBFCs, and that is the reason why this segment is showing higher growth.”
Amitava Chatterjee, page 11 of the filed PDF · View the filing
Management estimated around INR1,600-1,700 crores of provisioning over five years based on RBI's base circular requirements.
Answered by Amitava Chatterjee
Asked by Mona Khetan: What could be the ECL impact as a percentage of net worth?
p. 11
“I think our bank will need to provide for around INR1,600 to INR1,700 crores”
Amitava Chatterjee, page 11 of the filed PDF · View the filing
Management said NIM should trend upward but the low income from J&K retail advances will take one to one-and-a-half quarters to recover, hence the conservative guidance.
Answered by Amitava Chatterjee
Asked by Sunil Jain: Given rate cycle is over, will NIM benefit in coming quarters?
p. 13
“the low interest income that we have been able to generate from Jammu & Kashmir, which will take around one, one and a half quarters to be regenerated. So that is the reason I have given a NIM guidance of 3.5%, otherwise I must say that it will be on a upward trend.”
Amitava Chatterjee, page 13 of the filed PDF · View the filing
Management gave detailed SMA figures showing improvement year-on-year and sequentially.
Answered by Amitava Chatterjee
Asked by Sunil Jain: What is the SMA-1 and SMA-2 data?
p. 13
“Now SMA-1 has come down from 5.54% to 4.44% March Y-on-Y, and SMA-2 is slightly higher at 0.71% which was 0.35% last year.”
Amitava Chatterjee, page 13 of the filed PDF · View the filing
Management said the bank retains 60% market share overall despite branch share of only 37%, with competition concentrated in Srinagar and Jammu.
Answered by Amitava Chatterjee
Asked by Pranay: What is the competitive landscape in Jammu & Kashmir outside major markets?
p. 14
“While we still maintain a market share of 60%, the branch share is only 37%.”
Amitava Chatterjee, page 14 of the filed PDF · View the filing
Management attributed the decline to focused recovery mechanisms and technical write-offs of old small accounts.
Answered by Amitava Chatterjee
Asked by Sonal Minhas: What is driving the sharp fall in trade category gross NPA quarter-on-quarter?
p. 15
“A few small accounts have also been written off where the NPAs have been there for more than three to four years where recoveries have not come. So, it is a combination of both.”
Amitava Chatterjee, page 15 of the filed PDF · View the filing
Management said it has not identified any particular sticky category, including agriculture which typically shows more NPAs elsewhere.
Answered by Amitava Chatterjee
Asked by Sonal Minhas: Which sectors are sticky in terms of NPAs?
p. 16
“I have not found any particular category which is sticky. The very fact that even the stickiest of all categories in the country, that is the Agri, we have the least NPAs in Agri.”
Amitava Chatterjee, page 16 of the filed PDF · View the filing
Management said there is zero MFI exposure, with lending concentrated in AAA-rated NBFCs in housing, gold loans and consumer segments.
Answered by Amitava Chatterjee
Asked by Sonal Minhas: What sectors comprise the NBFC lending book in financial markets?
p. 16
“No MFIs, zero MFIs. We have not lent to any MFI. First of all, all the companies that we have lent to, the NBFCs, are all AAA rated.”
Amitava Chatterjee, page 16 of the filed PDF · View the filing
Management said it aims to cross INR5 lakh crores in business within three years from the current INR2.9 lakh crores.
Answered by Amitava Chatterjee
Asked by Nirav Sheth: What is the three-year business growth aspiration for the bank?
p. 16
“we aim to cross INR5 lakh crores by then. So that is the first aim, of course, depending on the environment and market situations.”
Amitava Chatterjee, page 16 of the filed PDF · View the filing
Management said margins should improve but the timing of retail advance income recovery in J&K remains uncertain, keeping the guidance conservative for now.
Answered by Amitava Chatterjee
Asked by Mona Khetan: Is the 3.5% NIM guidance too conservative given levers like RIDF maturity and deposit repricing?
p. 18
“I am still not very sure as to when the returns from the retail advances will start to accrue. It might start accruing very soon. I have already seen green shoots.”
Amitava Chatterjee, page 18 of the filed PDF · View the filing
Risks flagged
Cumulative RBI rate cuts and deposit competition compressed NIM below guidance
p. 4
“This is largely on account of the cumulative rate cuts of 125 bps by RBI in 2025 which has impacted yield on advances, coupled with intense competition for deposits, resulting in a lower transmission of the reduced rates on the liability side.”
Amitava Chatterjee, page 4 of the filed PDF · View the filing
Impairment provision related to Gramin Bank amalgamation hit other income
p. 4
“a hit on our Other Income on account of impairment provision of INR180 crores along with a sequential moderation in our trading income, triggered by an uptick in bond yields owing to the geopolitical developments”
Amitava Chatterjee, page 4 of the filed PDF · View the filing
Geopolitical tensions and downgraded India growth forecast prompting conservative guidance
p. 5
“The ongoing geopolitical tensions in West Asia, which has led to the World Bank slashing India's growth forecast for FY'26-27 from 7.2% to 6.6%, call for a degree of caution in our immediate future outlook.”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
Difficult operating environment in core J&K geography affected retail advances and income
p. 13
“the Personal segment which is more or less majorly contributing to our interest income from this geography was largely affected last year”
Amitava Chatterjee, page 13 of the filed PDF · View the filing
Erosion of branch market share in J&K due to increased competition
p. 14
“Now that 60% might sound very good as of today, but it has come down substantially from last two - three years.”
Amitava Chatterjee, page 14 of the filed PDF · View the filing
Upcoming ECL implementation requiring capital raise
p. 5
“However, considering that RBI has notified ECL implementation with effect from 1st April 2027, the Bank will consider raising of capital to the tune of INR 1,250 crores in the current year, at an opportune time”
Amitava Chatterjee, page 5 of the filed PDF · View the filing
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